Feasibility Study to Develop a Hospital Business in India

The Indian healthcare industry is growing at a momentous pace. Currently the overall industry is sized at USD 467.5 billion and is growing at a CAGR of 14.5%. Well India’s  vast population is pivotal in the growth of the healthcare sector, other factors such as growth is disposable income, shift towards preventive healthcare, and surge in lifestyle diseases are also pushing the sector ahead. Another factor is India’s young and dynamic population. 65% of the population is aged below 35, while 50% is aged less than 25. 

Indian government is also playing an instrumental role in fostering growth in the overall industry. The allocation of budget for healthcare sector has been increased to 2.1% in FY 23, from a modest 1.6% in FY 21. Under the Ayushman Bharat Program, GOI has introduced PM-JAY, Pradhan Mantri Jan Arogya Yojna, under which it stipulates to offer universal, affordable, and accessible healthcare to all. 

GOI has allowed 100% FDI under automatic routes in setting up hospitals and healthcare centers in India. Likewise, there are numerous taxes break available for healthcare businesses; especially the one’s setting up in rural parts of the country. 

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Feasibility Study Service for a Healthcare Center in India 

Out of the total size of the healthcare business in India, 77% comprise of hospitals and healthcare centers. India has around ~46,500 private healthcare centers, while ~24,000 governments run healthcare set-ups. Yet the industry is underserved. The country has less than 1 bed for 1000 people. It is lower than other emerging economies such as Brazil and China. 

Healthcare is an industry, where the demand is much larger than the supply. The demand will further continue to grow further at a rampant pace backed by thriving economy, rise in general population, and growing demand for quality healthcare. 

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This will require increased investment in multi-specialty, specialty, super specialty, trauma centers, etc. in India, both across metros as well as smaller towns. 

 

Steps for feasibility study services in India 

Market Analysis: Understand the healthcare market in India, at national, regional, and local levels. Get valuable insights and information about the market size, market share (hospitals versus diagnostics versus pharma versus medical device manufacturing), healthcare ecosystem, future growth, and more. Market analysis will also require understanding the nature of healthcare businesses in the market (branded national players versus organized regional players versus standalone units), growth across each segment, consolidation in the market, etc. 

Industry Framework Analysis: This step requires understanding more about the healthcare through proven framework such as SWOT and PESTLE analysis. This will help the investor to learn about the growth drivers of the business, opportunities, challenges, potentials, etc. This will also help to know more about the polices and regulatory framework that dictate the business. 

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Customer Analysis: Probably the most essential part of feasibility of a hospital and healthcare center in the country. Customer analysis deals with multiple facets of consumer behavior research such as key segments (corporate versus general versus medical tourists, etc.) , targeting & positioning, needs & wants of customers, gaps in the present market, etc. 

Location Analysis: Learn more about the potential location in terms of accessibility (roads, trains, airports, etc.), target market size, availability of other health care centers & hospitals in the vicinity, available size of the plots, etc. In case the location is not finalized, then we have benchmark 4/5 potential location and zero down to the most suitable alternative. 

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Competition Insights: Make a list of key hospitals and healthcare centers in the vicinity. Evaluate their revenue, past growth trends, volume of customers/ patients served capabilities, fees & pricing, etc. Similarly collect valuable information and insights on the marketing and customer acquisition strategy, corporate engagement programs, USPs and challenges of individual hospital. 

Financial Analysis: Detailed financial analysis encompassing revenue analysis, costing analysis, ROI projection (3-5 years), ratio evaluation, etc. Create a proper business model that can help any discerning investor to get a detailed understanding of the hospital venture. 

Evaluate the Feasibility of the Hospital Project: Recommend the right approach to enter the market alongside the roadmap to grow and gain competitive advantages in the market. This step will also mull numerous potential risks for the healthcare center business and how it can be managed effectively. It will also mention how the new project will offer better value to the consumers and play an important role in addressing the existing market gaps. 

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How The India Watch can help? 

The India Watch is a leading Feasibility Study and Market Research company specializing in the healthcare center. We can work for a wide range of clients such as entrepreneurs, business houses, corporate, investors, etc. We can offer feasibility study for a wide range of clients such as 

• Hospitals and healthcare centers
• Multispecialty and super specialty hospitals 
• Diagnostic centers
• Alternative wellness centers
• Pharma ventures
• Medical device manufacturing units

 For any further information, feel free to drop us a mail at info@theindiawatch.com

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